Traders ought to keep the course after Tuesday’s decline

CNBC’s Jim Cramer advised investors Tuesday to stick to their trading strategies and ignore the often-changing prism of the market after stocks enjoyed a five-day winning streak.

“Please don’t go by the daily action, because that just tells you that you are using the filter we all use instead of doing your own homework and making your own judgments”, the “Bad money“Said the host.

“Much of the junk thrown away tonight and tonight could turn out to be the treasure of the market once we get herd immunity,” he said, adding, “We’ll get herd immunity sooner than Wall Street expects we get there. “

The comments come after the major averages all fell from their highs on Monday in the middle of a busy earnings reporting week. That S&P 500 fell by almost 0.5% and the tech-heavy one Nasdaq composite pulled back more than 1% as concerns about the spread of Covid-19 variants and the potential impact on economic recovery continued to grow.

The Centers for Disease Control and Prevention announced on Tuesday that the publicWhether vaccinated or not, face masks should be worn in indoor areas with high transmission rates.

Cramer said the new guidelines helped boost sales of many stocks. Shares in United Parcel Service slipped by almost 7% and Tesla The stock lost 1.9%, despite both companies reporting better-than-expected numbers in the second quarter.

“After two tirelessly positive weeks of profit, we have adapted. Great only becomes good, not so bad just becomes bad… let’s just say things are seen as terrible, ”said Cramer.

“You have to keep in mind that this prism could be temporary … but I suspect the market is in debug mode,” he added.

Meanwhile, recession stocks like utilities, drug and food stocks began to rise, Cramer noted.

“The CDC, NIH, and FDA have all created many moments of pain and hysteria that the market could normally shake,” said Cramer. “This time around, however, the Prism says we’re not going to be able to do this anytime soon, so buy recession-proof stocks that don’t have to worry about the economy like the drugs or the utilities.”